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    Household Products

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    Saloni
    1. The document discusses test marketing of a new vegetable oil-based soap called Sehra in India. It suggests changes to the product name, promotion strategy, and price based on the test results. 2. It describes the 5 stages of new product development: idea generation, screening, analysis, development, and test marketing. Product development involved creating prototypes and consumer testing. Advertising development involved creating two campaigns, one of which was chosen. 3. Test marketing involved launching in Indore and Hyderabad to analyze sales data, shop audits, and consumer panels on how effectively the purity point of difference was communicated versus competitors. Evaluation found only the fragrance was promoted and management judgment alone chose the ad

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    Household Products

    Uploaded by

    Saloni
    79 views2 pages
    1. The document discusses test marketing of a new vegetable oil-based soap called Sehra in India. It suggests changes to the product name, promotion strategy, and price based on the test results. 2. It describes the 5 stages of new product development: idea generation, screening, analysis, development, and test marketing. Product development involved creating prototypes and consumer testing. Advertising development involved creating two campaigns, one of which was chosen. 3. Test marketing involved launching in Indore and Hyderabad to analyze sales data, shop audits, and consumer panels on how effectively the purity point of difference was communicated versus competitors. Evaluation found only the fragrance was promoted and management judgment alone chose the ad

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    Marketing case study analysis

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    1. The document discusses test marketing of a new vegetable oil-based soap called Sehra in India. It suggests changes to the product name, promotion strategy, and price based on the test results. 2. It describes the 5 stages of new product development: idea generation, screening, analysis, development, and test marketing. Product development involved creating prototypes and consumer testing. Advertising development involved creating two campaigns, one of which was chosen. 3. Test marketing involved launching in Indore and Hyderabad to analyze sales data, shop audits, and consumer panels on how effectively the purity point of difference was communicated versus competitors. Evaluation found only the fragrance was promoted and management judgment alone chose the ad

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    79 views2 pages

    Household Products

    Uploaded by

    Saloni
    1. The document discusses test marketing of a new vegetable oil-based soap called Sehra in India. It suggests changes to the product name, promotion strategy, and price based on the test results. 2. It describes the 5 stages of new product development: idea generation, screening, analysis, development, and test marketing. Product development involved creating prototypes and consumer testing. Advertising development involved creating two campaigns, one of which was chosen. 3. Test marketing involved launching in Indore and Hyderabad to analyze sales data, shop audits, and consumer panels on how effectively the purity point of difference was communicated versus competitors. Evaluation found only the fragrance was promoted and management judgment alone chose the ad

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Household Products (India) Limited (D)

    By Saloni Kapil (PGP 15300)


    Ans 1. Before launching the product in the national market, the following changes are
    suggested:
    Price: The sales by both weight and value increased when the price was decreased
    through the Rs 2.50 coupons. However, as the manufacturing costs may be higher
    for vegetable oil soap production, a price of Rs 7.50 seems reasonable for the
    premium segment. Also considering that most of premium soaps sold for Rs 8.00,
    our price offering is fairly competitive.
    Product: The name of the product should be changed from Sehra to something
    more feminine, in accordance with the target segment of women between 18-35
    years. It should stress on purity due to vegetable oils, not just on jasmine
    fragrances.
    Promotion: Our point-of-difference the fact that Sehra was made with vegetable
    oils was not recalled by the survey respondents. The advertisement also highlights
    only the benefits of Jasmine, and not the vegetable oil differentiation, thus the value
    is not being delivered, while putting us in direct competition with Jasmine. The
    premium of Rs 0.50 charged over Jaimala, despite a poorer fragrance, needs to be
    justified.
    Ans 2.
    1.Idea Generation - The marketing manager suggested introduction of a new perfumebased soap for the high price segment, as it was a growing segment with greater
    returns and profit margins.
    2.Idea Screening A decision was made regarding the type of product to be created.
    The features of jasmine fragrance and usage of vegetable oils in its manufacturing
    were agreed upon, based on both judgment and concept test results.
    3.Business Analysis Rough cut sales estimates were made using the segment wise
    growth data, competitor sales analysis etc.
    4.Development The R&D department carried out the product development, by
    generating two prototypes and performing customer tests to evaluate these two
    offerings and the competitors product. Simultaneously, the ad agency had
    developed two advertising campaigns, one of which was chosen based on the
    managements intuition and judgment.
    5.Test Marketing The product and promotions were tested in the markets of Hindudominated city of Indore, and Muslim-dominated city of Hyderabad.
    Ans 3.
    Stage

    Decision Taken

    Product
    Concept

    Product
    Developm
    ent and
    Testing

    Introduce new soap in high price


    segment
    Launch in the appeal to perfume

    segment
    Point of differentiation purity due

    to use of vegetable oils


    Conduct consumer testing to

    select one of the two fragrances


    Ensure that the selected perfume
    is better than the competitor,
    Jaimala

    Evaluation and Reasons


    High price segment had growth
    rate of 15% year-on-year; greater
    profit margins
    Appeal to traditional-minded
    customers
    Feasibility report prepared by
    manager
    Statistically insignificant
    preference of one fragrance over
    Jaimala taken for incorporation into
    product, which later came up in
    test marketing results

    Advertisin

    g
    Developm
    ent and
    Testing

    Planning
    of test
    marketing

    Adopt an advertising strategy


    highlighting the two product
    qualities fragrance and purity

    Introduce the product in two cities


    Indore and Hyderabad
    Analyze sales data, data from shop
    audits and consumer panels

    Only jasmine fragrance point of


    parity was highlighted in the final
    advertisement
    Ad chosen only on basis on
    management judgment; may not
    be in line with consumer
    requirements
    Cities chosen to establish whether
    the point of difference (purity) is
    valuable/being effectively
    communicated to consumers
    through analyzing various data
    sources (repeat buying, feedback)

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